Crude supply cut, U.S. growth optimism buoy oil prices to reach highest in a year

Reaching their highest level in a year, oil prices soared on Friday on growing hopes for an economic recovery in the United States and a renewed commitment to hold back crude supply among oil producers.

Brent crude futures rose 40 cents, or 0.7%, to $59.24 a barrel, following a $59.41 hit, its highest since Feb. 20 in 2020. Brent is expected to climb 6% this week.

U.S. West Texas Intermediate (WTI) crude futures inched up 42 cents, or 0.8%, to $56.65 a barrel, after reaching $56.84, its highest since Jan. 22, 2020. The benchmark contract is also on course for almost 9% weekly gain, which would be its largest weekly gain since October last year.

Investors were encouraged by stronger-than-expected orders for U.S. goods in December, underscoring manufacturing strength and hopes for faster enactment of Biden’s proposed $1.9 trillion coronavirus relief plan.